Update – Macau Plays

Posted: March 16, 2011 in Uncategorized

16th Mar 2011

Extracts of news report (Macau Business)

Jacobs’ lawsuit goes ahead in Nevada

The lawsuit filed by former Sands China chief executive Steven Jacobs against the firm and its parent company Las Vegas Sands will be heard in the Clark County District Court, in Nevada.

Las Vegas Sands and Sands China argued that the case should be dismissed and that any dispute between the parties should be resolved in the Macau courts but yesterday a state judge decided otherwise.

The judge has called the parties to meet on April 22 to discuss the possibility of a settlement.

Mr Jacobs first filed the suit in October, in a court in Nevada, in a case in which he alleges he was wrongfully dismissed.

According to Sands China’s lawyers, the company will decide shortly whether or not to appeal the ruling.

The allegations included in Mr Jacobs filings have prompted the Nevada Gaming Control Board to initiate an investigation into eventual wrong practices by Las Vegas Sands and its Macau subsidiary, according to the Wall Street Journal.

The same allegations have already caused the Securities and Exchange Commission, the Department of Justice and the FBI to open investigations into Las Vegas Sands for possible violations of the U.S. Foreign Corrupt Practices Act.

 

VIP gaming growing faster than mass market

VIP gaming in Macau is growing faster than the mass gaming market, according to Morgan Stanley.

In an investors note, analysts Praveen K. Choudhary and Calvin Ho say that last month VIP rolling chip volume went up by 72 percent year-on-year.

Mass revenue grew by 39 percent.

Overall, Macau gross gaming revenue was up 48 percent year-on-year in February.

For the first two months of 2011, gross gaming revenue grew 40 percent year-on-year, driven by 44 percent growth in VIP revenue and 31 percent in mass revenue, Mr Choudhary and Mr Ho said.

Morgan Stanley analysts expect Melco Crown Entertainment and Sands China to deliver 19 percent and 14 percent EBITDA growth quarter-on-quarter, respectively, in the first three months of 2011.

“This should drive stock outperformance in the near term for these two names,” Mr Choudhary and Mr Ho said.

Macau truly becomes a junket den

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